q1 fy17 investor presentation august 2016...august 2016. discussion summary ... reliance retail,...

Q1 FY17 INVESTOR PRESENTATION

AUGUST 2016

DISCUSSION SUMMARY

• Q1 FY17 RESULTS HIGHLIGHTS

• OPERATIONAL HIGHLIGHTS

• FINANCIALS

• COMPANY OVERVIEW – ABOUT US

2

• COMPANY OVERVIEW – ABOUT US

• UNDERSTANDING OUR BUSINESS MODEL

• SUSTAINABLE COMPETITIVE ADVANTAGES

• FUTURE GROWTH STRATEGY

• ANNEXURE

Q1 FY17 – RESULTS HIGHLIGHTS

688.8 756.4

542.8632.6 13.9% 12.5% 2.2%

2.7%

Q1 FY17 YoY ANALYSIS

Adjusted Revenues* OPERATING EBIDTA & EBIDTA % PAT & PAT Margin %

3

Note – EBIDTA W/O Other Income Adjusted Revenues* - Revenues have been adjusted excluding the sale of raw material (Fabric & Yarn), Fabric & Yarn sales: Q1 FY17 – Rs. 121.4 mn, Q1 FY16 – Rs. 144.2 mn

542.8

Q1 FY16 Q1 FY17

Revenues Adjusted Revenues*

96.1 94.8

12.5%

Q1 FY16 Q1 FY17

EBIDTA EBIDTA Margin %

14.820.4

Q1 FY16 Q1 FY17

PAT Adjusted PAT Margin %

16.5%* 1.4% 37.8%

Q1 FY17 – FINANCIAL HIGHLIGHTS

FINANCIAL UPDATE -

� Q1 FY17 Revenues from Operations increased by 9.8 % to Rs. 756.4 mn. However, excluding the sale of raw material (Fabric & Yarn),

Fabric & Yarn sales: Q1 FY17 – Rs. 121.4 mn, Q1 FY16 – Rs. 144.2 mn, Adjusted Revenues increased by 16.5% to Rs. 632.6 mn. Gross

Margins remained stable at 71.2%.

� Overall Growth Outlook is stable and positive due to good visibility on the Order book.

� Q1 FY17 EBIDTA w/o Other income remained flat at Rs. 94.8 mn. EBIDTA Margin was 12.5%.

� Advertisement and Marketing expenses increased by 24.8% to Rs. 100.1 mn as compared to Rs. 80.2 mn YoY.

� The current strategy is to establish our Brand visibility on a Pan India basis along with increased focus on Southern & western

India, therefore the increase in advertising and marketing expense should be seen as an investment which would lead to long

term benefits of enhancing our Overall brand recall. The management feels that the sale from the southern and western India

will increase to 10% of the overall revenues in the FY17 from 8% in FY16 which shows the acceptance and good growth

4

will increase to 10% of the overall revenues in the FY17 from 8% in FY16 which shows the acceptance and good growth

potential of selling our products in the said region.

� No Major capex planned for next 2 years. Therefore, Positive Operating leverage expected as the production gains scale during

the course of the year.

� Q1 FY17 PAT increased by 37.8% at Rs. 20.4 mn vs Q1 FY16 PAT of Rs. 14.8 mn due to Lower depreciation and moderating Interest

expenses.

� 7 New EBO stores opened during the quarter with a focus on Central and Southern regions. Stores opened in Karnataka, Bihar,

Chhattisgarh, Madhya Pradesh, Himachal Pradesh, Punjab and NCR.

� Foray into the accessories business in leather products.

� Update on Marketing & Branding - Links for the new Summer Ad campaign launched during the quarter –

• Monte Carlo - Summer Collection (Full version Ad) –You Tube Link

• Monte Carlo – Alpha Summer Collection – You Tube Link

• Monte Carlo - Tweens Collection (Kids Segment) – You Tube Link

OPERATIONAL HIGHLIGHTS

REVENUE ANALYSIS – SEGMENT WISE

Segment wise Revenues – Product Category wise (In Rs mn)

Q1 FY17 Q1 FY16 FY16 FY15 FY14 FY13 FY12

Total Revenues ** 632.6 542.8 5,664.8 5,271.8 4,566.7 3,686.0 3,346.9

% Revenue Share – Segment

wise

Woollen Segment -13.3% -2.1% 34.2% 34.5% 36.5% 42.7% 41.6%

Cotton Segment 87.6% 73.4% 51.3% 52.6% 50.8% 47.5% 57.3%

Home Furnishings 19.0% 25.4% 9.7% 8.4% 8.0% 6.5% 0.1%

5

MBO – Multi Brand Outlet

EBO – Exclusive Brand Outlet

COCO – Company own Company operated

FOFO – Franchise own Franchise operated

Home Furnishings 19.0% 25.4% 9.7% 8.4% 8.0% 6.5% 0.1%

Kids 6.7% 3.3% 4.9% 4.6% 4.7% 3.3% 1.0%

Segment wise Revenues – Channel wise (In Rs mn)

Q1 FY17 Q1 FY16 FY16 FY15 FY14 FY13 FY12

Total Revenues** 632.6 542.8 5,664.8 5,271.8 4,566.7 3,686.0 3,346.9

% Revenue Share –Channel wise

MBO including NCS / Institutional 63.9% 66.3% 63.1% 63.5% 65.0% 59.6% 60.2%

Retail Outlets - EBO – COCO 4.1% 4.7% 5.0% 5.5% 5.0% 1.8% 7.7%

Retail Outlets - EBO - FOFO 32.0% 29.0% 31.9% 30.9% 30.0% 38.5% 32.1%

Note ** - Revenues from Core products


REVENUE ANALYSIS – REGION WISE

Segment wise Revenues –Region wise

Q1 FY17 Q1 FY16 FY16 FY15 FY14 FY13

% Revenue Share – Region

wise

North 42.7% 49.0% 52.7% 51.3% 58.8% 57.1%

6

North 42.7% 49.0% 52.7% 51.3% 58.8% 57.1%

East 32.3% 32.1% 25.9% 27.1% 25.1% 22.0%

Central 13.4% 11.7% 13.1% 13.8% 9.0% 12.7%

South 5.2% 5.3% 3.6% 3.1% 2.7% 3.7%

West 6.2% 2.0% 4.4% 4.6% 4.3% 4.0%

Overseas 0.2% 0.0% 0.2% 0.1% 0.2% 0.5%

STRATEGIC FOCUS TO REDUCE DEPENDENCE ON NORTH REGION AND IMPROVE MARKET PRESENCE AND

MARKET SHARE ACROSS PAN INDIA.


STORE NETWORK ANALYSIS

Total Network details

As on Jun-16

No of Own EBO 21

No of Franchise EBO 207

No of MBO 2,200+

No of NCS Presence 164

• Total Number of EBOs – 228, spread across Pan India. Major

Presence in North, Central & East.

• Increasing Footprint in South.

• Have strong Distribution presence across more than 2,200+ Multi-

Brand Outlets pan India.

• Have presence in 164 National chain store Outlets

• Presence through 5 National Retail chains such as –

Reliance Retail, Shoppers stop, Pantaloons, Metro, Central.

7

Retail store - Exclusive Brand Outlets Network details (EBO)

Jun-16 Mar-16 Dec-15 Sep-15 Jun-15 Mar-15 Mar-14 Mar-13 Mar-12

Existing - No of Stores 223 222 218 220 214 214 166 152 144

New Opened 7 3 11 4 6 6 28 20 12

Closed 2 2 7 6 0 6 1 6 4

Total Number of Retail outlets 228 223 222 218 220 214 193 166 152

FINANCIALS

P&L STATEMENT

Particulars (in million)Particulars (in million) Q1 FY 17Q1 FY 17 Q1 FY 16Q1 FY 16 % Change% Change FY 16FY 16

Net Sales* 754.0 687.0 9.75% 6,199.9

Other Operating Income 2.4 1.7 37.6% 15.4

Total Income from Operations 756.4 688.8 9.82% 6,215.3

Cost of Goods Sold 217.9 189.0 15.3% 3,118.0

Gross Profit 538.5 499.7 7.75% 3,097.3

Gross Margin 71.2% 72.6% (137bps) 49.8%

Personnel Expenses 121.2 117.5 3.20% 463.8

Advertisment Expenses 100.1 80.2 24.8% 348.5

Other Expenses 222.3 206.0 7.9% 1051.9

8

Other Expenses 222.3 206.0 7.9% 1051.9

EBITDA 94.8 96.1 -1.3% 1233.2

EBITDA Margin 12.5% 14.0% (141bps) 19.9%

Other Income 29.4 37.5 -21.6% 139.1

EBITDA Margin (incl. Other Income) 16.4% 19.4% (298bps) 22.1%

Depreciation 59.4 70.2 -15.4% 292.7

Interest Expense 33.5 35.6 -6.0% 162.4

PBT 31.3 27.7 12.8% 901.0

Taxes 10.8 12.9 -16.0% 311.6

PAT 20.4 14.8 37.9% 589.4

PAT Margin 2.7% 2.2% 50bps 9.5%

EPS 0.94 0.68 38.2% 27.12

*Includes sale of Fabrics & Raw Material - Fabric & Yarn sales: Q1 FY17 – Rs. 121.4 mn, Q1 FY16 – Rs. 144.2 mn, Adjusted Revenues increased by 16.5% to Rs. 632.6 mn from Rs. 548.8 mn.

OUR PEDIGREE

OUR BRAND & PRODUCT

PORTFOLIO

COMPANY OVERVIEW – ABOUT US

BRIEF OVERVIEW

• Branded apparel business was demerged into Monte Carlo Fashions Limited (MCFL) in 2011. Ownership of the brand ‘Monte

Carlo’ is with the Company

• ‘Monte Carlo’ is the flagship brand with a portfolio of woollen apparel and cotton and cotton blended apparel

• Have Launched different ranges under the Umbrella Brand “Monte Carlo” - ‘Platine’ is our premium range for men, ‘Denim’ is our

exclusive range for denim apparel, ‘Alpha’ is our exclusive range for women and ‘Tweens’ is our exclusive range for kids.

• Launched in 1984 as an exclusive woollen brand by Oswal Woollen Mills Limited (“OWML”), “Monte Carlo” has emerged as one of

the leading Indian apparel brands. Experienced management team led by Mr. Jawahar Lal Oswal who has over 50 years experience in

the textile and woollen industry and with Mr. Sandeep Jain Executive Director .

• ‘Monte Carlo’ has been recognized as a ‘Superbrand’ for woollen knitted apparel in each edition of Consumer Superbrands India

since its first edition in September 2004.

• Launched as an exclusive woollen brand, Company has successfully diversified with a comprehensive line of woollen, cotton & cotton

blended, knitted and woven apparel and home furnishing under the ‘Monte Carlo’ brand

9

OUR REACH & PRESENCE

OUR FINANCIALS

exclusive range for denim apparel, ‘Alpha’ is our exclusive range for women and ‘Tweens’ is our exclusive range for kids.

• Brands distributed through a network of Monte Carlo EBOs and MBOs including national chain store. Strong distribution network and

wide presence across the country. In south & west the company has adopted distribution system through distributors.

• MBOs - Products are supplied through 21 exclusive commission agents to over 2,200+ MBOs on outright basis.

• EBOs – COCO - 21 stores are leased, managed by company personnel. Inventory is owned by MCFL

• EBOs – FOFO – 207 EBOs are on Franchise basis. Products are supplied on Pre-order Outright basis.

• Also supplying through National Chain Stores for 5 Retail chains. E-commerce presence through own portal montecarlo.in and tie-ups

with Digital platforms such as Flipkart, Snapdeal etc

• Consolidated Revenues, EBITDA and PAT were Rs. 6,215.3 mn, Rs. 1,233.2 mn and Rs.589.4 mn in 2016

• Virtually debt-free balance sheet with Total Debt to Equity at 0.2 x as of Mar-16. Strong Cash Balance at Rs. 1,007.8 mn as on Mar-16. (Excluding Non Current investments of Rs. 450.1 mn)

• Healthy Return Ratios: 2016 ROCE of 17.3%, Cash Adjusted ROCE of 22.2% and ROE of 13.7%.

• Virtually the business model has no Inventory risk and credit risk, thus protected from normal hazards of Branded Apparel Business

Key Institutional Investors % Holding

Kanchi Investments Ltd (Samara Capital) 10.94

Goldman Sachs India 2.34

ICICI Prudential Life Insurance 2.28

Aditya Birla Pvt Eqity Trust 1.57

Birla Sun Life Trustee Co. 1.34

DB International (Asia) Ltd 1.30

Market Data As on 09.08.2016 (BSE)

Market Capitalization (Rs Mn) 9,922.0

No. of shares outstanding (Mn) 21.73

Face Value (Rs.) 10.00

52 week High-Low (Rs.) 572.0-337.0


SHAREHOLDING STRUCTURE

10

DB International (Asia) Ltd 1.30

64.25%

35.75%

June-16 Shareholding

Promoter Public

Source – Company / BSESource – BSE


FINANCIAL HIGHLIGHTS

3,722 4,044

5,031

5,826 6,215

FY 12 FY13 FY14 FY15 FY16

818 710

927

1,230 1,233

22.0%

17.5% 18.4%21.2% 19.9%

FY12 FY13 FY14 FY15 FY16

EBITDA (mn) EBITDA Margin %

495 489 544 598 589

13.3%12.1%

10.8% 10.3%9.5%


PAT (mn) PAT Margin %

REVENUES EBITDA & EBITDA Margin PAT & PAT Margin

CAGR: 13.7%

11

EBITDA (mn) EBITDA Margin % PAT (mn) PAT Margin %

36.8%

24.2%20.3% 20.9%

17.3%

37.0%

29.9%31.5%

30.0%

22.2%

32.8%

20.6% 15.7% 15.1% 13.7%

0.43

0.27 0.31 0.31

0.22

FY 12 FY 13 FY 14 FY15 FY16

ROCE Cash Adj ROCE ROE D/E

LEVERAGE & RETURN RATIOS REVENUE – SEGMENT WISE %EBO – STORE GROWTH

Source - RGP

Note – ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt), (Cash Adj. Capital Employed = Equity + Total Debt – C&CE)]

17 17 18 20 21

135 149175 194 202


No of Own EBO No of Franchise EBO

214193

166152

38.3 36.6 33.1 34.5 33.9

61.754.7 56.2 52.6 51.6

06 6.9 8.4 9.6

0 2.7 3.9 4.6 4.9


Wollen Cotton Home Furnishing Kids

223

WoollensSweaters

Jackets, Shawls

CottonsT-shirt, Shirts,

Trousers


OUR PRODUCT PORTFOLIO

12

Kids Tweens

Sweaters

Jackets, T-shirt,

Sweat Shirts

Economy rangeT-Shirts, Sweatshirts,

Thermal-wear

Home Furnishing Range

Mink Blankets, Bed Sheets,

Quilts

• Brands distributed through a network of Monte Carlo EBOs

and MBOs including national chain stores

• MBOs - Products were supplied by 21 exclusive commission

agents to 2,200+ MBOs on outright basis

• EBOs – Company-Owned-Company-Operated

• With a focus to develop brand equity by opening stores at

High streets at Premium Retail Locations and showcasing

an extensive range of products.

• 21 stores are leased and managed by company personnel.

Inventory is owned by MCFL

• EBOs – Franchisee-Owned-Franchisee-Operated

J&K

4

HP

Punjab 7

38

UP

Haryana

21

Rajasthan

Uttrakhand

6Delhi:

16

Monte Carlo exclusive brand outlets (EBO)# -Total 228 EBOs with

presence across India. Mainly into North, East & Central


OUR RETAIL PRESENCE & RETAIL NETWORK

8

13

• EBOs – Franchisee-Owned-Franchisee-Operated

• Fit-outs layout and fixtures defined by MCFL. But

franchisees lease premises for stores and bear staff and

operational costs

• With no major capex from the company side, the format is

highly scalable

• NCS – Products are also supplied to 164 National chain stores

(NCS) on Consignment / Outright basis. Supply to 5 Retail

chains such as Reliance retail, Shopper stop, Central,

Pantaloons, Metro.

• Entered into distribution agreements with online sales

through digital commerce platforms

Bihar 32

Jharkha

ndMP

9

Gujarat

5

Maharashtra 4Orissa

2

Over 20 stores

10 to 20 stores

Less than 10 stores

WB

7C hhattisgarh

1

N agaland: 1

Manipur: 1

Tripura

17

UP

2719 Assam: 1

MBO – Multi Brand Outlet

EBO – Exclusive Brand Outlet

COCO – Company own Company operated

FOFO – Franchise own Franchise operated

Karnataka 5

Tamil Nadu 2


OUR RETAIL PRESENCE THROUGH E-COMMERCE

TIE-UPS WITH ONLINE PLATFORMSOWN PORTAL – WWW.MONTECARLO.IN

RETAIL PRESENCE THROUGH E-COMMERCE -

• Recently started online e-commerce sale through our own portal www.montecarlo.in as well as tie-ups with several online

portals. The e-Retail portal and online business completely belongs to the company.

• Have Entered into distribution agreements with some of the leading Indian digital commerce platforms for sale of our

products online.

14


IN-HOUSE DESIGN & PRODUCTION CAPABILITIES

IN-HOUSE DESIGN & PRODUCT DEVELOPMENT

• In-House dedicated design team of over 30 professionals which travels and follows

the emerging global fashion trends for creation of the designs for our new

collections.

• Focus on developing new products, improving existing ones and forecasting fashion

trends.

• In addition, our Exclusive Commissioned Agents have direct access to the dealers,

distributors and retailers in India and they conduct regular market surveys to

understand consumer demand and feedback.

MANUFACTURING CAPABILITIES –

15

MANUFACTURING CAPABILITIES –

• Three manufacturing facilities in Ludhiana, Punjab :-

• One for woollen apparel products

• Two for cotton apparel products.

• The manufacturing facilities include facilities for product development, a

design studio and sampling infrastructure.

• Almost all woollen knitted products are manufactured in-house. Recently also

commenced in-house manufacturing of some of our cotton t-shirts and thermals in

April 2014.

• For the remaining cotton and cotton-blended products, we follow an asset-light

model by outsourcing the production to a network of job work entities with which

we enjoy a long-term relationship.

COMPANY OVERVIEW

UNDERSTANDING OUR BUSINESS MODEL

DESIGN & PRODUCT

DEVELOPMENT

RAW MATERIAL

PROCUREMENTAPPAREL PRODUCTION

BRANDING &

DISTRIBUTION

COMPLETELY IN-HOUSE COMPLETELY OUTSOURCED IN-HOUSE + OUTSOURCEDBRAND MANAGEMENT –

COMPLETLY IN-HOUSE

DESIGN TEAM & DESIGN STUDIO

PRODUCT DEVELOPMENT

• One for woollen apparel products &

two for cotton apparel products

• 595 knitting machines in our

THREE MANUFACTURING

FACILITIES IN PUNJAB –

LEVERAGING THE NAHAR ECO-

SYSTEM –

• OWML - The Company is one of the

biggest producers of worsted Woollen

yarns in the country.

• OWML yarn products have been

• Ownership of the ‘Monte Carlo’ brand is

with the Company. ‘Monte Carlo’ is the

flagship brand of our Company which is a

market leader.

• ‘Monte Carlo’ is the umbrella brand under

which the company has successfully

diversified with different ranges such as

16

• In-House 30 Member dedicated design

team - Develop new products, improve

existing ones and forecast fashion trends.

• Commissioned agents have direct access

to the dealers, distributors and retailers in

India and they conduct regular market

surveys to understand consumer demand

and feedback

SAMPLING INFRASTRUCTURE

• 595 knitting machines in our

woollen manufacturing facility.

• Almost all our woollen knitted

products are manufactured in-house

• Also recently commenced in-house

manufacturing of some of cotton t-

shirts and thermals in April 2014.

• For the remaining cotton and

cotton-blended products, we follow

an asset-light model

• Outsourcing the production to a

network of job work entities with

which we enjoy a long-term

relationship.

ASSET LIGHT OUTSOURCING

MODEL -

DISTRIBUTION - EBO + MBO +

NCS + E-COMMERCE

INDEPENDENT AUDITOR

CONSULTANT FOR RELATED

PARTY TRANSACTIONS

• TRANSFER PRICING MONITORING -

GRANT THORNTAN

• The transfer pricing and related

party transactions are being

monitored by Grant Thortan in

addition to the statutory audit

• OWML yarn products have been

exhibited as the best products by the

International Wool Secretariat (IWS)

• Ensures Access to high quality raw

material

• % of Raw material procured from

OWML – 50.3 %

• % of Raw material procured from NSML

– 18.1 %

OWML – Oswal Woollen Mills Ltd

NSML – Nahar spinning Mills Ltd

IWS - (an international body for regulating the spinning and hosiery

industry

diversified with different ranges such as

Platine, Alpha, Tweens and Cloak & Decker.

• Control over Brand Positioning, Brand

Communication strategy and Distribution

channel strategy.

• Brands distributed through a network of

Monte Carlo EBOs and MBOs including

national chain stores

Distribution Model No of Outlets

MBO 2,200+

EBO – COCO 21

EBO - FOFO 207

NCS 164

COMPANY OVERVIEW

UNDERSTANDING OUR BUSINESS MODEL

JANUARY FEBRUARY - MARCH APRIL MAY TILL JULY AUGUST ONWARDS

UNDERSTANDING WINTER SEASON SEGMENT

• Product Development &

Sampling Process

• Design process is finalised.

Sample sets sent to our

Commissioned Agents. (CA)

• Commissioned Agents take these sample

sets to various cities for display and invite

the dealers and distributors

• Company Organizes fashion shows to

showcase proposed products to the

MBOs.

• CA procure orders from the MBOs and act

as an interface between us and the MBOs.

These CA are Exclusive to the Company.

• The dealers and

distributors of the

MBOs place orders for

our products with the

CA

• Pre Booking of Orders

from MBOs and

Franchise EBOs

• Production for these specific designs

for which orders are placed,

commences from the month of

May.

• Start dispatching our winter

wear products to the ‘Monte

Carlo Exclusive Brand Outlets’

and MBOs from August

onwards.

• Peak Inventory in

September,

17

AUGUST SEPTEMBER- OCTOBER OCTOBER NOVEMBER TILL JANUARYFEBRUARY

ONWARDS

UNDERSTANDING SUMMER SEASON SEGMENT


• Separate Dedicated

Design team for non-

winter products

• Design process is

finalised. Sample sets sent

to our Commissioned

Agents. (CA)

• Commissioned Agents take these sample

sets to various cities for display and invite

the dealers and distributors

• Company Organizes fashion shows to

showcase proposed products to the MBOs.

• CA procure orders from the MBOs and act

as an interface between us and the MBOs.


• The dealers and

distributors of the

MBOs place orders for

our products with the

CA

• Pre Booking of Orders

from MBOs and

Franchise EBOs

• Production for these specific designs

for which orders are placed,

commences from the month of

November.

• Start dispatching our non-

winter wear products to the

‘Monte Carlo Exclusive Brand

Outlets’ and MBOs from

August onwards.

Designing is an ongoing process throughout the year for both cotton and woollen garments.

Production of plain and basic designs continue through out the year for both Woollen and cotton segments

COMPANY OVERVIEW

UNDERSTANDING SEASONALITY

Total Revenues (Rs.

Mn)

% of Revenues in

Third Quarter

FY 2012 3,722 53.6 %

FY 2013 4,044 59.9 %

FY 2014 5,037 53.4 %

FY 2015 5,826 54.4%

FY 2016 6,215 55.3%

Avg. Ticket price (Rs.)

Winter wear - Sweater, Jackets

& Cardigans~2000

Shirts ~1000

Denim ~900

Trouser ~900

T-shirt ~600

18

• Significant amount of revenue generated primarily during the third quarter of each fiscal year.

• The seasonality is primarily because the sales of our winter products which includes sweaters, jackets, cardigans

and sale of certain cotton and cotton-blended products such as cotton jackets, suits, sweat shirts, full sleeve t-

shirts and shirts in the winter mainly occurs between October and January.

• Winter products are typically higher in value in terms of production cost as well as sales revenue, and

accordingly generate higher revenue, in comparison with the non-winter products.

FY 2016 6,215 55.3%

Winter clothing usually comprises of high-ticket products, with approximately 4 months of winter revenues comparable to 8

months of summer business

SUSTAINABLE COMPETITIVE ADVANTAGE

STRONG BRAND & BRAND RECALL

• The strength of our brand 'MONTE CARLO' has significantly contributed

to the success of our business.

• The Ownership of the ‘Monte Carlo’ brand as well as all the sub-brand

ranges are the registered trademarks and belong to the Company.

• Monte Carlo enjoys significant premium and brand recall on a pan-India

basis

• Leading Indian Apparel brand by revenue – as per Technopak report

2014

• As per the Technopak Report, 2014, we are the leading woollen knitted

apparel brand in India in the premium and mid-premium segment.

19

apparel brand in India in the premium and mid-premium segment.

• In 2014, Monte Carlo was honoured as one of ASIA'S BEST

MARKETING BRANDS by World Consulting & Research Corporation

(WCRC)

• MONTE CARLO' has been recognized as a 'Superbrand' for woollen

hosiery garments since September 2004 by International Society for

Superbrands.

• Introduced successfully a number of ranges under the umbrella brand

and seek to build its brand-equity based on new products

• Showcases our ability to anticipate, identify and respond to changing

fashion trends in a timely manner.

• Scale of our business provides us the ability to increasingly focus on

branding and promotion to further increase our visibility and market

share across India

RANGES LAUNCHED UNDER THE BRAND – “MONTE CARLO”


WELL DIVERSIFIED PRODUCT MIX

Range, positioning and products offered

RangeWoollens &

Woollen-blended

Cottons &

Cotton-blended

Home

FurnishingKids

Monte Carlo -

Premium and

mid-premium

segments

for men

Sweaters, jackets,

thermals, woollen

accessories (caps,

mufflers, Shawls,

stoles)

Shirts, trousers,

t-shirts,

track-suits

Mink

blankets,

bed sheets

and

quilts

Platine -

Premium range

for Men

Cashmere and

cash-wool

sweaters,

blazers, coats

Cotton shirts,

trousers and t-

shirts

• Launched as an exclusive woollen brand , the Company now offers a comprehensive

line of woollen, cotton & cotton blended, knitted and woven apparel and home

furnishing under the ‘Monte Carlo’ brand.

• The woollen and woollen blended product category contributed 34 % of revenues in

FY16.

• Over last 3 years , New ranges have been successfully launched under the Umbrella

Brand – “Monte Carlo” :

• An exclusive women’s wear range ‘Alpha’

• Kids wear range ‘Tweens’ - for age group 7-13’

• Premium men’s range of woollen sweaters under ‘Platine’ and

• Economy range for men under ‘Cloak and Decker’

20

blazers, coats

Denim - mid-

premium

Range

Denim trousers

(jeans) and shirts

Alpha -

Exclusive range

for Women

Sweaters,

cardigans

Shirts, t-shirts,

tops and

trousers

Tweens -

Exclusive Kids

wear Collection

Sweaters,

Cardigans,

Shirts, t-shirts

and

Bottoms

Cloak & Decker

- Economy

range

for men

Cotton and

cotton-blended

t-shirts

• Also Introduced its range of home furnishing products like mink blankets, quilts and

sheets

Segment wise Revenues FY16 FY15 FY14 FY13 FY12

Total Revenues (Rs. Mn) 5,664.8 5,271.8 4,566.7 3,686.0 3,346.9

% Revenues - Woollen Segment 34.2% 34.5% 36.5% 42.7% 41.6%

% Revenues - Cotton Segment 51.3% 52.6% 50.8% 47.5% 57.3%

% Revenues – Home Furnishing

Segment9.7% 8.4% 8.0% 6.5% 0.1%

% Revenues - Kids Segment 4.9% 4.6% 4.7% 3.3% 1.0%


ROBUST DISTRIBUTION MODEL

MBO NCS EBO-COCO EBO –FOFO

Total Number of

Outlets2,200+ 164 21 207

% of Revenue

Contribution – FY16

63.1%

(NCS Contribute less than 10%)36.9%

Distribution Sale

Model

Pre-Booking of Orders

Outright Sale

SOR – Sale or Return

/ Outright Sale

Inventory owned by

MCFL

Pre-Booking of Orders

Outright sale

Minimal – 5-15 % of

21

Inventory Risk No Yes Yes

Minimal – 5-15 % of

Products Return

Allowed

Discount Sharing No No YesYes, Range from 5% to

17.5%

Payment Collection –

Credit Risk

Exclusive Commission

Agents are Liable to

pay

Reputed Retail Chains -

Bank Guarantee's and

PDC taken from

Franchise

MBO – Multi Brand Outlet EBO – Exclusive Brand Outlet NCS – National Chain Stores

COCO – Company Own Company Operated FOFO – Franchise Own Franchise Operated

ROBUST DISTRIBUTION MODEL ASSURES MINIMAL INVENTORY RISK AND CREDIT RISK.

TILL DATE, THERE HAS BEEN NO BAD DEBTS OR RECEIVABLES WRITE OFF FOR THE COMPANY

FUTURE GROWTH STRATEGY

• Plan to diversify our pan-India presence by penetrating into the southern and western

regions of India.

FOCUS ON BRAND & PRODUCT

PORTFOLIO EXPANSION

• Focus on branding and promotion to further increase our visibility and market share

across India

• Focus on a comprehensive range of cotton and cotton-blended products which cater to

all seasons in-order to expand our all-season product range and strengthen our pan-

India operations.

22

regions of India.

• Focus on Online sales through own portal as well as Tie-ups with e-commerce portals

such as Flipkart, Jabong, Snapdeal and India Shopping.

FOCUS ON RETAIL NETWORK

EXPANSION

FOCUS ON RETURN RATIOS

EXPANSION

• No major capex requirement for over next 2 years. Have already built the Manufacturing

building facility, need to install additional machinery to expand production facility.

• Ability to sustain Robust growth for next 2-3 years without any major capex. Therefore

Return ratios set to improve.

This presentation and the following discussion may contain “forward looking statements” by Monte Carlo Fashions Ltd (“MCFL” or

the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future

results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions,

expectations, estimates, and projections of the management of MCFL about the business, industry and markets in which MCFL

operates.

These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other

DISCLAIMER

23

factors, some of which are beyond MCFL’s control and difficult to predict, that could cause actual results, performance or

achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be

construed, as a representation as to future performance or achievements of MCFL.

In particular, such statements should not be regarded as a projection of future performance of MCFL. It should be noted that the

actual performance or achievements of MCFL may vary significantly from such statements.

THANK YOU

24

Kapil JagasiaDickenson Seagull IR

Contact No : +91 9819033209

Email : [email protected]

THANK YOU

Mr. Dinesh GognaDirector

Email : [email protected]

MONTE CARLO FASHIONS

STORE IMAGES

25

MONTE CARLO FASHIONS

OUR CAMPAIGNS & COLLECTIONS

26

q1 fy17 investor presentation august 2016...august 2016. discussion summary ... reliance retail,...

Documents